Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) At a particular time, a company is:
(a) a top company if the requirements in item 1 of the table are met; or
(b) a tier - 1 company of the top company if the requirements in item 2 of the table are met.
Top companies and tier - 1 companies | |||
Column 1 | Column 2
| Column 3 | Column 4
|
No specific requirements | The company must be a foreign resident | The company must not be a * wholly - owned subsidiary of another company (other than a company that is a * prescribed dual resident, or a company that is an Australian resident that fails to meet a condition in column 2 of item 2) | |
2 Tier - 1 company | The company must have all or some of its taxable income (if any) taxed at a rate that is or equals the * corporate tax rate apart from this Part The company must not be covered by an item in the table in section 703 - 20 | The company must be an Australian resident (but not a * prescribed dual resident) | The company: (a) must be a * wholly - owned subsidiary of the * top company; and (b) must not be a wholly - owned subsidiary of a company that is an Australian resident (other than a company that fails to meet a condition in column 2 or 3) |
(2) For the purposes of paragraph (b) of column 4 of item 2 of the table, in determining whether a company (the test company) is a * tier - 1 company, if 2 or more other companies beneficially own all of the * membership interests in the test company, and each of those other companies:
(a) is a * wholly - owned subsidiary of the * top company; and
(b) meets the conditions in columns 2 and 3 of item 2 of the table;
the test company is taken to be a wholly - owned subsidiary of one of those other companies.